The subject company (the “Company”) provides air transport support services to customers throughout the U.S. at fixed-base operator locations.
To align ongoing performance and value growth with compensation, the Company granted certain employees stock options as part of its long-term incentive plan. The stock options vest partially over time and partially following the achievement of various performance and market conditions.
The Company did not have personnel with the necessary accounting or valuation expertise to properly recognize the stock options in their audited financial statements. Application of accounting guidance related to stock compensation can be complicated when awards contain multiple vesting conditions, as well as other unique forfeiture and settlement provisions. Further, determining the fair value of awards containing complex vesting structures requires sophisticated valuation techniques.
The Company engaged Opportune to assist with the accounting, valuation, and financial reporting of the stock options. Opportune pairs financial modeling and valuation experts with technical accounting professionals to deliver a high-quality, expansive set of services to their clients. Specifically, the deliverables Opportune provided for the Company to achieve its objectives included the following:
Additionally, Opportune guided the Company through the deliverables to ensure it had a complete understanding of everything to meet its internal control requirements for the use of a specialist.